Despite it being a tough year for businesses, generally most employers are still paying out bonuses to their staffers as a reward for their hard work and productivity – albeit at a lower rate.
Small and Medium Enterprises Association of Malaysia national secretary Yeoh Seng Hooi said most SMEs were unlikely to give out big bonuses this year as they were still struggling to recover from the pandemic, with profit margins being squeezed by the weakened ringgit and higher However, he said that companies that are profitable will still give out bonuses. “SMEs need to conserve cash flow due to the uncertainties going forward, but we must be in tune with the market for talent retention.” “Companies that are profitable will still give out bonuses to their staffers,” he said.
Over the years, it has been a common practice for businesses to pay bonuses to their employees at year-end or just before the Chinese New Year as a reward and motivation to drive productivity and engagement in the year ahead. Federation of Malaysian Manufacturers (FMM) Penang chapter chairman Datuk Lee Teong Li said he believed most manufacturing companies would pay bonuses to their employees this year. “In Penang, the economy is not that bad compared with others. “We still have a lot of multinational companies that will be able to give bonuses to their staffers,” he said. Lee, however, said most companies would give out the usual one-month bonus paid at the end of the year, with the amount likely to be similar
Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai said most factories in that industry were on an austerity drive and bonuses would most likely be based on each employee’s performance. He said that most companies planned to pay a normal bonus whether contractual or not. “Some will pay the usual one-month bonus. Some will pay less, and there can be those with no bonuses at all,” he said, adding that if the bonus was contractual, then employees would get paid.
Businessman Mohd Ruslan Ali, who run several restaurants in Penang and Kedah, said he would skip giving out bonuses to his 50 workers this year. “Our daily operation cost has increased. The prices of everything are on the rise, including food items.
“Plus, customers seldom eat out nowadays,” he said.